Turkmenistan-focused Dragon Oil announced Tuesday that it increased its revenues by 47 percent during 2011 to $1.15 billion, generating a profit that was 68 percent greater at $648 million.
Reporting its results for 2011, Dragon said its average gross daily rate of production rose 30 percent to 61,500 barrels of oil per day (bopd). The firm's exit production rate for 2011 exceeded its target, reaching 71,751 bopd (2010: 57,013 bopd). Dragon said that it has set a 100,000 bopd production target top be reached in 2015 and maintained for a minimum of five years.
Dragon – whose principal asset is the Cheleken Contract Area, offshore in the eastern section of the Caspian Sea – also confirmed that it completed 13 wells during 2011 against an initial guidance of 11 wells. For this year, the firm expects to complete between 13 and 15 wells, while it plans to complete 15 to 20 development wells each year from 2013 to 2015.
"In 2011, we achieved a remarkable production growth, 30 percent increase in gross field production, which has translated into record financial results for the group. The year also saw several significant infrastructure projects coming to fruition, including the installation of the Dzheitune (Lam) C platform and the Dzheitune (Lam) Block-1 gathering platform, both of which are now operational," said Dragon CEO Dr. Abdul Jaleel Al Khalifa. "I am particularly pleased that the excellent results we have achieved with respect to drilling this year have been complemented by the addition of some 41 million barrels of oil and condensate to our 2P reserves, allowing us to achieve a reserve replacement ratio of 183 percent, while another 88 million barrels are booked as contingent oil and condensate resources."
Dr. Al Khalifa added: "Looking ahead I am confident that Dragon Oil will reach the challenging new 100,000 bopd production target in 2015 and sustain this level for at least five years thereafter. We have both talent and financial resources to deliver on this target."
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